Philadelphia-area manufacturers reported near steady business activity in April, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday, with the index of regional manufacturing activity unexpectedly showing a modest decrease.
The Philly Fed said its diffusion index of current activity edged down to 1.3 in April from 2.0 in March, although a positive reading indicates continued growth in regional manufacturing activity. The drop surprised economists, who had expected the index to inch up to 3.3.
While the indicator for overall activity remained slightly positive, the Philly Fed noted that other broad indicators were mixed.
The report showed that the shipments index climbed to 9.1 in April from 3.5 in March, while the new orders index dipped to a negative 1.0 from a positive 0.5.
The number of employees index also slid into negative territory, dropping to a negative 6.8 in April from a positive 2.7 in March.
On the inflation front, the prices paid index slid to 3.1 in April from 8.5 in March, while the prices received index fell to a negative 7.5 from a negative 0.8.
The Philly Fed said the broad indicators of future activity suggest that firms expect continued growth, although optimism has waned compared with last month.
The future general activity index tumbled to 19.5 in April from 32.5 in March. The indexes for future new orders and shipments also fell compared to the previous month, while the future employment index was virtually unchanged.
Monday morning, a separate report from the New York Federal Reserve showed that its index of regional manufacturing activity fell by more than anticipated in April.
The New York Fed said its general business conditions index fell to 3.1 in April from 9.2 in March. While a positive reading indicates an increase in activity, economists had expected the index to show a more modest decrease to a reading of 7.5.
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